The Washington Employment Security Department and the Washington Department of Labor and Industries keep close tabs on how employers classify workers. It is important to understand that these and other state agencies use stricter guidelines than the IRS, particularly for employee versus independent contractor status. Businesses that have incorrectly classified employees as contractors run the risk of being held accountable for back taxes, interest and penalties.
The Bellevue, Washington, law firm of Lana Kurilova Rich PLLC provides representation to businesses in the greater Seattle area, statewide and nationwide. Whether you want to take proactive steps to ensure that employees are classified correctly, or you have received notice of an audit, call our Seattle employment tax attorney toll free at 866-418-3175 for a free initial phone consultation. You can also contact us by email.
It's More Than Just a Matter of Employment Taxes — Assistance From a Washington Employment Security Department Attorney
State law outlines a six-part test that is used to determine whether a worker is a contractor or an employee, and all six parts must be satisfied in order to establish the independent contractors status. That test includes, for example, whether or not the worker registered as a business with the state. If not, that worker is an employee, not an independent contractor. While a worker may be an independent contractor as far as the IRS is concerned, that worker may not be a contractor in the state's eyes. We will take great care to see that your workers are classified appropriately, and we will represent you in audits with the state.
If it is found that employees have been incorrectly classified as contractors, the Department of Labor and Industry will seek payments for industrial insurance premiums, with interest and penalties. The Employment Security Department will seek payments for unemployment insurance premiums, likewise with interest and penalties.
Issues with the Employment Security Department are often prompted by a contractor seeking unemployment. If truly a contractor, that person will not be able to get unemployment. If the Employment Security Department determines the contractor was actually an employee, unemployment will be paid and the employer will be held accountable for those payments.
Call 866-418-3175 for a Free Initial Phone Consultation for a Lawyer Experienced With Washington Department of Labor and Industries Issues
We invite you to contact us today by phone or by e-mail to discuss your case with our experienced Washington employment security department lawyer. Find out how we can help.
